offshore cny best practice guidelines for consultation

Offshore CNY best practice guidelines v 0_2

Offshore CNY Best Practice Guidelines for SWIFT FIN and ISO 15022 messages

Version 0.2

Status Draft Prepar at ion 21 Ju ly 2011 Author Offshore CNY Best Pract ice Work ing Group

Note: Relevant regulations and legislation take precedence over the guidance issued by this working group. These Guidelines represent the industry’s best endeavor to assist peers in the interpretation and implementation of Offshore CNY best practices for SWIFT FIN and ISO 15022 messages. The Offshore CNY Best Practice Group - or any of its Members - cannot be held liable for any error in these Guidelines.

Contributing Institutions ANZ Bank Asia Securities Industry & Financial Markets Association (ASIFMA) (Observer) Bank of America Merrill Lynch Bank of China (Hong Kong) Limited The Bank of East Asia Limited BNP Paribas Citibank, N.A. CLS Credit Suisse DBS Bank Ltd. Deutsche Bank AG Euroclear Bank Hong Kong Investment Funds Association (HKIFA) (Observer) The Hongkong and Shanghai Banking Corporation Limited Invesco Hong Kong Limited ISDA (Observer) Janus Capital Asia Limited JP Morgan Chase Bank, N.A. JF Asset Management Limited Macquarie Capital Securities Limited National Australia Bank Limited Nomura Asset Management Hong Kong Limited Royal Bank of Scotland plc Standard Chartered Bank State Street Bank and Trust Company The Bank of New York Mellon UBS Global Asset Management (Hong Kong) Ltd. Wing Hang Bank Wing Lung Bank SWIFT


Table of Contents

1. Introduction .................................................................................................................................... 3

2. Purpose of this document ................................................................................................................ 3

3. Guidelines to present offshore CNY transactions ............................................................................... 5

3.1. Payments ......................................................................................................................... 5 3.1.1. MT 101 – Request for Transfer ........................................................................................................ 5

3.1.2. MT 103 - Single Customer Credit Transfer ....................................................................................... 6

3.1.3. MT 202 - General Financial Institution Transfer ............................................................................... 8

3.1.4. MT 210 - Notice to Receive ............................................................................................................. 9

3.2. FX, MM, & Derivatives ....................................................................................................... 9 3.2.1. MT 300 - Foreign Exchange Confirmation ........................................................................................ 9

3.2.2. MT 304 - Advice/Instruction of a Third Party Deal ......................................................................... 11

3.2.3. MT 305 - Foreign Currency Option Confirmation ............................................................................ 12

3.2.4. MT 306 (exotic options) - Foreign Currency Option Confirmation ................................................... 13

3.2.5. MT 320 - Fixed Loan/Deposit Confirmation ................................................................................... 13

3.2.6. MT 321 - Instruction to Settle a Third Party Loan/Deposit .............................................................. 14

3.2.7. MT 330 - Call/Notice Loan/Deposit Confirmation .......................................................................... 16

3.2.8. MT 380 - Foreign Exchange Order ................................................................................................. 16

3.2.9. MT 381 - Foreign Exchange Order Confirmation............................................................................. 17

3.3. Securities ....................................................................................................................... 17 3.3.1. MT 513 - Client Advice Of Execution.............................................................................................. 17

3.3.2. MT 514 - Trade Allocation Instruction ........................................................................................... 18

3.3.3. MT 515 - Client Confirmation of Purchase or Sale .......................................................................... 19

3.3.4. MT 543 - Deliver Against Payment ................................................................................................ 19

3.3.5. MT 564 - Corporate Action Notification ......................................................................................... 20

3.3.6. MT 565 - Corporate Action Instruction .......................................................................................... 21

3.3.7. MT 566 - Corporate Action Confirmation ....................................................................................... 22

3.4. Standing Settlement Instruction ....................................................................................... 23 3.4.1. MT 670 - Standing Settlement Instruction Update Notification Request ......................................... 23

3.4.2. MT 671 - Standing Settlement Instruction Update Notification ....................................................... 24

3.5. Cash Reporting ............................................................................................................... 24 3.5.1. MT 900 - Confirmation of Debit .................................................................................................... 24

3.5.2. MT 910 - Confirmation of Credit ................................................................................................... 25

3.5.3. MT 940 - Customer Statement Message ........................................................................................ 26

3.5.4. MT 942 - Interim Transaction Report ............................................................................................ 26

3.5.5. MT 950 - Statement Message ....................................................................................................... 27

4. Frequently Asked Questions ........................................................................................................... 27

5. Observations and Recommendations .............................................................................................. 27

6. Market Feedback ........................................................................................................................... 28


1. Introduction

■ Background

Industry stakeholders approached SWIFT with concerns about the lack of straight-through-processing (STP) of Offshore Chinese Yuan (CNY) products. As of July 2011, counterparties are processing these Offshore CNY products in a manual (non-STP) fashion. As a result, stakeholders foresee the need to reengineer business processes, invest in information technology system upgrades and hire staff to scale for manual processing. SWIFT’s involvement was requested to help industry participants define best practices so that market participants can make use of the SWIFT MT and ISO 15022 messages to facilitate STP processing of Offshore CNY products. After the April 1st industry group meeting with 68 participants across 24 organizations, there was agreement to establish 3 market groups to propose the best practice recommendations for straight-through-processing for the offshore CNY market. The groups are representative of the industry concerns by focusing on securities, cash and trade and

treasury SWIFT MT and ISO 15022 messages. The three groups met from May to June 2011 with a final

meeting on June 29th

2011 to gain consensus across the working groups. Hereafter, for the purposes of this document, we will refer to these groups in entirety as the Offshore CNY Best Practice Group (OCBPG).

■ Objective

The objective of Offshore CNY Best Practice Group is to agree best practice on the use of SWIFT MT and ISO 15022 messages to enhance STP rates for Offshore CNY transactions.

2. Purpose of this document

■ Summary of guidelines The best practice document act as guiding principles to increase STP rates between counterparties by clearly identifying onshore verse Offshore CNY transactions in SWIFT MT and ISO 15022 messages with the use of structured codes. The use of these structured code are optional but creates a baseline to work towards in counterparty communication.

In all cases, the structured code appears as the last piece of information in the recommended field of the MT and ISO 15022 messages. This will help Information Technology professionals apply programming logic with a goal of systematic automation. OCBPG commonly agreed on a common structured code for all impacted messages. The structured code is /PSET/ followed by 2 characters ISO country code embedded by /. For example, /PSET/HK/ would indicate that the place of settlement is Hong Kong. Therefore, the ISO currency code in the MT and ISO 15022 messages will be validated as CNY. By adding /PSET/<country code>/ this would indicate the place of settlement is outside China. As a result, CNY ISO currency with the addition of /PSET/HK/ would indicate an offshore CNY transaction. For the payments group, the structured code adds information indicating whether the payment is trade or non-Trade Settlement related. For the treasury group, there is additional information to the structured code that indicates the settlement mechanism of payment verses payment in the Hong Kong RTGS.


Messages that are impacted are as follows:

Payments

MT 101 Request for Transfer

MT 103 Single Customer Credit Transfer

MT 202 General Financial Institution Transfer

MT 210 Notice to Receive

Treasury

MT 300 Foreign Exchange Confirmation

MT 304 Advice/Instruction of a Third Party Deal

MT 305 Foreign Currency Option Confirmation

MT 306 Foreign Currency Option Confirmation (for exotic options)

MT 320 Fixed Loan/Deposit Confirmation

MT 321 Instruction to Settle a Third Party Loan/Deposit

MT 330 Call/Notice Loan/Deposit Confirmation

MT 380 Foreign Exchange Order

MT 381 Foreign Exchange Order Confirmation

Securities

MT 513 Client Advice Of Execution

MT 514 Trade Allocation Instruction

MT 515 Client Confirmation of Purchase or Sale

MT 540 Receive Free

MT 541 Receive Against Payment

MT 542 Deliver Free

MT 543 Deliver Against Payment

MT 544 Receive Free Confirmation

MT 545 Receive Against Payment Confirmation

MT 546 Deliver Free Confirmation

MT 547 Deliver Against Payment Confirmation

MT 564 Corporate Action Notification

MT 565 Corporate Action Instruction

MT 566 Corporate Action Confirmation

Standing Settlement Instructions for Treasury and Payment

MT 670 Standing Settlement Instruction Update Notification Request

MT 671 Standing Settlement Instruction Update Notification

Cash Reporting

MT 900 Confirmation of Debit

MT 910 Confirmation of Credit

MT 940 Customer Statement Message

MT 942 Interim Transaction Report

MT 950 Statement Message

■ Legends used in this guidelines

Symbol Description

/ Delimiter that must be present at the beginning and ending of the structured code.

PSET Indicates the place of settlement

TR Indicate the transaction is Trade Settlement related

NT Indicates the transaction is non-Trade Settlement related

< The beginning symbol of a dynamic field. The following text describes the nature of the data to be presented.

> The closing symbol of a dynamic field.

SPRO Indicates the deal is to be settled with a specified method

PVP Indicates the transaction is to be settled by ‘Payment Versus Payment’


method offered by the central bank of Hong Kong.

<ISO country code> When this appears, it indicates that participants should use a two-letter ISO 3166 country code. For example, Hong Kong, the country code is ‘HK’.

<Trade Settlement or non-Trade Settlement code>

When this appears participants can use ‘TR’ or ‘NT’.

3. Guidelines to present offshore CNY transactions

3.1. Payments

3.1.1. MT 101 – Request for Transfer

- In relevant individual transaction, use the structured code in the last portion of sequence B field 70.

This field allows for a maximum of 4 lines and each line can have 35 characters (4 x 35x).

- Examples of the structured code use in field 70 are:

o /PSET/<ISO country code>/ OR o /PSET/<ISO country code>/< Trade Settlement or non-Trade Settlement code>/

- If ‘<Trade Settlement or non-Trade Settlement code>’ is not specified, then by default the transaction is

non-Trade Settlement related. - The structured code must appear as the very last piece of information in the field. - The structured code must appear in a single line. - When using the structured code it must appear in its entirety together with delimiters.

The use of the structured code is optional.

1. In this example of an offshore CNY transaction with the place of settlement is Hong Kong and the

transaction is Trade Settlement related. This example shows sequence B field 70 with the first three lines occupied therefore the structured code appears in line four as the last piece of information.

Message type 101

Sequence B

Sender to Receiver Information :70://<narrative text> //<narrative text> //<narrative text> /PSET/HK/TR/

Sequence B


2. In this example, there is an offshore CNY transaction with the place of settlement as Hong Kong and the transaction is non-Trade Settlement related. The third line of sequence B field 70 has space to hold the structured code.

Sender to Receiver Information :70://<narrative text> //<narrative text> //<narrative text>/PSET/HK/NT/

OR

Sender to Receiver Information :70://<narrative text> //<narrative text> //<narrative text>/PSET/HK/

3. In this example, this is an Offshore CNY transaction with the place of settlement in Hong Kong and the

transaction is Trade Settlement related. The structured code will be displayed as the first and last piece of information in sequence B field 70 when there is no other information in this field.

Sender to Receiver Information :70:/PSET/HK/TR/

4. This is an example of an error in the format. The structured code is not the last piece of information in

sequence B field 70. Although the SWIFT network will not reject this message, OCBPG does not agree with this presentation.

Sender to Receiver Information :70://<narrative text> //<narrative text>/PSET/HK/TR/<narrative text>

5. This is an example of an error in the format. The structured code does not appear in a single line in

sequence B field 70. Although the SWIFT network will not reject this message, OCBPG does not agree with this presentation.

Sender to Receiver Information :70://<narrative text> //<narrative text>/PSET/ /HK/TR/

3.1.2. MT 103 - Single Customer Credit Transfer

- Use field 72 which allows for a maximum 6 lines and each line can have 35 characters (6 x 35x).

- The two possible structured codes are:

o ‘/PSET/<ISO country code>/<Trade Settlement or non-Trade Settlement code>/’ OR o ‘/PSET/<ISO country code>/’.

- If ‘<Trade Settlement or non-Trade Settlement code>’ is not specified then by default the transaction is

non-Trade Settlement related. - The structured code must appear as the very last piece of information in the field. - The structured code must appear in a single line. - When using the structured code it must appear in its entirety together with delimiters.



1. This example shows an offshore CNY transaction. The place of settlement is Hong Kong and the

transaction is Trade Settlement related. The first four lines are already filled with other information therefore the structured code is to put in the fifth line in field 72.

Message type 103

Sender to Receiver Information :72://<narrative text> //<narrative text> //<narrative text> //<narrative text> /PSET/HK/TR/

2. In this example, the transaction is offshore CNY with the place of settlement is Hong Kong and the

transaction is non Trade Settlement related. The fourth line has sufficient space to hold the full structured code. Shown below are two possible options to present the structured code in field 72.

Sender to Receiver Information :72://<narrative text> //<narrative text> //<narrative text> //<narrative text>/PSET/HK/NT/

OR

Sender to Receiver Information :72://<narrative text> //<narrative text> //<narrative text> //<narrative text>/PSET/HK/

3. This transaction is for offshore CNY with the place of settlement in Hong Kong and the transaction is non Trade Settlement related in field 72. There is no other information in field 72.

Sender to Receiver Information :72:/PSET/HK/NT/

4. This is an example of an error in the format. The structured code does not appear as the last piece of

information in field 72. Although the SWIFT network will not reject this message, OCBPG does not agree with this presentation.

Sender to Receiver Information :72:<narrative text> <narrative text> <narrative text>/PSET/HK/TR/<narrative text>


3.1.3. MT 202 - General Financial Institution Transfer

- The field used for the structured code is field 72. This field allows a maximum of 6 lines and each line

can have 35 characters (6 x 35x)

- The two possible structured codes are:


- If ‘<Trade Settlement or non-Trade Settlement code>’ is not present, it means the transaction is non-

Trade Settlement related. - The structured code must appear as the very last piece of information in the field. - The structured code must appear in a single line. - When using the structured code it must appear in its entirety together with delimiters.


1. In this example, the transaction is offshore CNY with the place of settlement in Hong Kong and the

transaction is Trade Settlement related. The first four lines are already filled with other information and therefore the structured code is specified on the fifth line.

Message type 202


2. This example shows an offshore CNY transaction with the place of settlement in Hong Kong and the

transaction is non-Trade Settlement related. The first four lines are filled with other information and the fourth line has enough space to hold the structured code. In this example, there are two options to display the structured code.


OR



3.1.4. MT 210 - Notice to Receive

- Use account identification – field 25 for the structured code. This field allows a maximum of 35

characters. - After presenting the account number, put additional remarks that had been agreed with counter party

in the field to distinguish the transaction is offshore CNY

1. The transaction is offshore CNY.

Message type 210

Account Identification :25:<account number><addition remarks to indicate the transaction is offshore CNY>

3.2. FX, MM, & Derivatives

3.2.1. MT 300 - Foreign Exchange Confirmation

- The structured codes use field 72 of sequence C (Optional General Information). This field allows a

maximum of 6 lines and each line can have 35 characters (6 x 35x) - The structured code is:

o /PSET/<ISO country code>/

- If the transaction is using payment versus payment (PVP) settlement method, then the structured code

to add in front of /PSET/<ISO country code>/ is:

o /SPRO/PVP/

- /SPRO/PVP/ can appear alone as a structured code without /PSET/<ISO country code>/. In this case /SPRO/PVP/ must still appear as the last piece of information in field 72 of the General Information sequence.

- If a transaction is offshore CNY and PVP, the structured code to appear in its entirety is:

o /SPRO/PVP/PSET/<ISO country code>/

- When using the structured code it must appear in its entirety together with delimiters. - All of the above structured code must appear as the very last piece of information in the field. - All of the above structured code must appear in a single line.


1. In this example, the transaction is offshore CNY with the place of settlement in Hong Kong and the

transaction with a settlement mechanism of PVP. The first three lines are already filled with other information and therefore the structured code appears in the fourth line in field 72 in sequence C.


Message type 300

Optional Sequence C – Optional General Information

Sender to Receiver Information :72://<narrative text> //<narrative text> //<narrative text> /SPRO/PVP/PSET/HK/

Optional Sequence D Split Settlement Details

2. This example is for an offshore CNY transaction with the place of settlement in Hong Kong and the

transaction with a settlement mechanism of PVP. The first three lines are already filled with other information but the third line has enough space for the structured code in field 72 in sequence C.

Sender to Receiver Information :72://<narrative text> //<narrative text> //<narrative text>/SPRO/PVP/PSET/HK/

3. The example shows an offshore CNY transaction with the place of settlement in Hong Kong. The first

four lines already filled with other information but the fourth line has enough space to hold the structured code in field 72 in sequence C.


4. In this example, the offshore CNY transaction has a place of settlement in Hong Kong. There is no

addition information in field 72 in sequence C as a result the structured code is shown alone. .

Sender to Receiver Information :72:/PSET/HK/

5. This is an example of a transaction with a settlement mechanism of PVP. The first three lines are

already filled with other information and the third line has enough space to hold the structured code in field 72 information in sequence C.

Sender to Receiver Information :72://<narrative text> //<narrative text> //<narrative text>/SPRO/PVP/

6. This is an example of an error in the format. The structured code is not the last piece of information in

field 72 in sequence C. Although SWIFT network will not reject the message, OCBPG does not agree this presentation.


Sender to Receiver Information :72:<narrative text> <narrative text> <narrative text>/PSET/HK/<narrative text>

7. This is an example of an error in the format. The structured code does not appear in the same line in

field 72 in sequence C. Although SWIFT network will not reject the message, OCBPG does not agree this presentation.

Sender to Receiver Information :72:<narrative text>/SPRO/ /PVP/PSET/HK/

3.2.2. MT 304 - Advice/Instruction of a Third Party Deal

- The structured codes use field 72 of sequence C (Optional General Information). This field allows a

maximum of 6 lines and each line can have 35 characters (6 x 35x) - The structured code is:


- If the transaction is using payment versus payment (PVP) settlement method, then the structured code

to add in front of /PSET/<ISO country code>/ is:

o /SPRO/PVP/

- /SPRO/PVP/ can appear alone as a structured code without /PSET/<ISO country code>/. In this case /SPRO/PVP/ must still appear as the last piece of information in field 72 of the General Information sequence.

- If a transaction is offshore CNY and PVP, the structured code to appear in its entirety is:

o /SPRO/PVP/PSET/<ISO country code>/



1. In this offshore CNY example, the place of settlement is in Hong Kong and the transaction is settled with

PVP. The first three lines are already filled with other information and therefore the structured code is on the fourth line in field 72 in sequence C.

Message type 304

Optional Sequence C – Optional General Information

Sender to Receiver Information :72://<narrative text> //<narrative text> //<narrative text>


/SPRO/PVP/PSET/HK/

Optional Sequence D Accounting Information

2. This example is for an offshore CNY transaction with the place of settlement in Hong Kong and the

transaction is settled with PVP. The first three lines are already filled with other information and the third line has enough space to hold the structured code in field 72 in sequence C.

Sender to Receiver Information :72://<narrative text> //<narrative text> //<narrative text>/SPRO/PVP/PSET/HK/

3. This offshore CNY transaction is settled with PVP. The first three lines are already filled with other

information and the third line has enough space to hold the structured code in field 72 in sequence C.

Sender to Receiver Information :72://<narrative text> //<narrative text> //<narrative text>/SPRO/PVP/

3.2.3. MT 305 - Foreign Currency Option Confirmation

- The structured codes use field 72. This field allows a maximum of 6 lines and each line can have 35

characters (6 x 35x) - The structured code is:




1. This offshore CNY transaction has a place of settlement in Hong Kong. The first three lines are already

filled with other information and therefore the offshore information is specified on the fourth line in field 72.

Message type 305

Sender to Receiver Information :72://<narrative text> //<narrative text> //<narrative text> /PSET/HK/


2. This is an example of an offshore CNY transaction with the place of settlement in Hong Kong. The first three lines are already filled with other information and the third line has enough space for the structured code in field 72.

Sender to Receiver Information :72://<narrative text> //<narrative text> //<narrative text > /PSET/HK/

3.2.4. MT 306 (exotic options) - Foreign Currency Option Confirmation

- The structured codes use field 72 of sequence I (Optional Additional Information). This field allows a

maximum of 6 lines and each line can have 35 characters (6 x 35x). - The structured code is:




1. This is an example of an offshore CNY transaction with the place of settlement in Hong Kong. The first

three lines are already filled with other information and therefore the structured code is on the fourth line in field 72 in sequence I.

Message type 306

Optional Sequence I – Optional Additional Information


Optional Sequence J Additional Amounts

3.2.5. MT 320 - Fixed Loan/Deposit Confirmation

- The field used is field 72 in sequence H (Optional Additional Information). Field 72 allows a maximum

of 6 lines and each line can have 35 characters (6 x 35x). - The structured code is:


- When specify, the structured code must appear in its entirety together with delimiters.


- The structured code must appear as the very last piece of information in the field. - The structured code must appear in a single line.


1. This is an example of an offshore CNY transaction where the place of settlement is in Hong Kong. First

three lines already filled with other information and therefore the offshore information is specified on the fourth line in field 72 in sequence H.

Message type 320

Optional Sequence H – Optional Additional Information


Optional Sequence I Additional Amounts

2. In this offshore CNY transaction the place of settlement is Hong Kong. The first four lines are filled with

other information however there is space for the structured code on the fourth line in field 72 in sequence H.


3. This is an example of an error in the format. The structured code is not on a single line in field 72 in

sequence H. Although SWIFT network will not reject the message, OCBPG does not agree this presentation.

Sender to Receiver Information :72://<narrative text> //<narrative text> //<narrative text> //<narrative text>/PSET/ /HK/

3.2.6. MT 321 - Instruction to Settle a Third Party Loan/Deposit

- In Subsequence C1 Settlement Parties block with Party field – 95a, the qualifier is ACCW to indicate the

Account with Institution, the structured code is to put in Party Contact Narrative field - 70C with PACO qualifier, a maximum 4 lines and each line can go up to 35 characters field (4 x 35x), excluding the qualifier and ‘//’

- The structured code is:



- When using the structured code it must appear in its entirety together with delimiters. - The structured code must appear as the last piece of information in the field. - The structured code must appear on the same line.


1. This example is for an offshore transaction where the place of settlement is in Hong Kong. The first

three lines are already filled with other information and therefore structured code is in the fourth line in field 70C in sequence C1.

Message type 321

Mandatory Repetitive Subsequence C1 Settlement Parties

Party :95P::ACCW//<BIC code>

Party Contact Narrative :70C::PACO//<narrative text> <narrative text> <narrative text> /PSET/HK/

Mandatory Repetitive Subsequence C1 Settlement Parties

2. In this example, the offshore CNY transaction has the place of settlement in Hong Kong. The structured

code appears alone because there is no addition information in field 70C in sequence C1.

Party Contact Narrative :70C::PACO//PSET/HK/

3. This is an example of an error in the format. The structured code is not the last piece of information in field 70C in sequence C1. Although SWIFT network will not reject the message, OCBPG does not agree this presentation.

Party Contact Narrative :70C::PACO//<narrative text> <narrative text> <narrative text> /PSET/HK/ <narrative text>

4. This is an example of an error in the format. The structured code is on two lines instead of one in field

70C in sequence C1. Although SWIFT network will not reject the message, OCBPG does not agree this presentation.

Party Contact Narrative :70C::PACO//<narrative text> <narrative text>


<narrative text>/PSET/ /HK/

3.2.7. MT 330 - Call/Notice Loan/Deposit Confirmation

- The structured code should be used in field 72 in Optional sequence H (Optional Additional

Information). This field allows a maximum of 6 lines and each line can have 35 characters field (6 x 35x). - The structured code is:


- The structured code must be used in its entirety together with delimiters. - The structured code must appear as the last piece of information in the field. - The structures code must appear on the same line.


1. This is an example of an offshore CNY transaction where the place of settlement is in Hong Kong. The

first three lines are already filled with other information. As a result, the structured code is to put in the fourth line in field 72 in sequence H.

Message type 330

Optional Sequence H – Optional Additional Information


2. This is an example of an offshore CNY transaction where the place of settlement is in Hong Kong. The

first four lines filled with other information however there is enough space for the structured code in the fourth line in field 72 in sequence H.


3.2.8. MT 380 - Foreign Exchange Order

- The structured code will appear in the mandatory subsequence B1 FX Order Parties block, in

Safekeeping Account field 97A with qualifier SAFE. This field is at maximum 35 characters, excluding the qualifier and //.

- After the account number then input text that has been agreed with your counter party to indicate an offshore CNY transaction.



Message type 380

Mandatory Subsequence B1 FX Order Parties

Safekeeping Account :97A::SAFE//<account number><addition remarks to indicate the transaction is offshore CNY>

3.2.9. MT 381 - Foreign Exchange Order Confirmation

- The structured code should appear in the mandatory subsequence B1 FX Order Parties block, in

Safekeeping Account field 97A with qualifier SAFE. This field is at maximum 35 characters, excluding the qualifier and ‘//’

- After the account number then input text that has been agreed with your counter party to indicate an offshore CNY transaction.


Message type 381

Mandatory Subsequence B1 FX Order Parties

Safekeeping Account :97A::SAFE//<account number><addition remarks to indicate the transaction is offshore CNY>

3.3. Securities

The securities post-trade, settlement instruction, settlement instruction confirmation message formats all support the mandatory or optional use of the place of settlement (PSET) that will identify the transaction as offshore CNY. The place for PSET is in field 95a of the repetitive settlement party sequence.

In both securities settlement instructions (MT540, MT 541, MT 542, MT 543) and confirmations (MT 544, MT 545, MT 546, MT 547), since their message layout are identical, the PSET is specified in Mandatory Repetitive Subsequence E1 Settlement Parties block

3.3.1. MT 513 - Client Advice Of Execution


1. In this example, the offshore CNY transaction lists the currency of the transaction as CNY and then includes the place of settlement (PSET) in the client advice of execution with the BIC code is XHKGHKHH (indicating HK Exchange & Clearing Corporation).

Message type 513

Mandatory Sequence C Order Details

Price :90B::DEAL//ACTU/CNY100,

Optional Repetitive Subsequence D1 Settlement Parties

Party :95P::PSET//XHKGHKHH

3.3.2. MT 514 - Trade Allocation Instruction

1. This Example makes use of field 95p in sequence C1 to show an offshore CNY transaction. PSET appears

with the place of settlement as Hong Kong Stock Exchange (XHKGHKHH).

Message type 514

Mandatory Sequence B Confirmation Details


Optional Repetitive Subsequence C1 Settlement Parties



3.3.3. MT 515 - Client Confirmation of Purchase or Sale

1. This is an example of an offshore CNY transaction where PSET appears in field 95P in sequence C with

the place of settlement as Hong Kong Stock Exchange (XHKGHKHH).

Message type 515

Mandatory Sequence C Confirmation Details


Optional Repetitive Subsequence D1 Settlement Parties


3.3.4. MT 543 - Deliver Against Payment

1. This is an example of a deliver against payment settlement instruction for offshore CNY transaction

where the settlement is at Hong Kong Stock Exchange (XHKGHKHH).

Message type 543

Mandatory Repetitive Subsequence E1 Settlement Parties


Mandatory Sequence E3 Amount


Amount :19A::SETT//CNY300000,

3.3.5. MT 564 - Corporate Action Notification

It is recommended by OCBPG when presenting the structured code, sub custodian should start to quote (the ‘plus’ sign indicates the message type in above diagram means the party who should start to quote the structured code). - The structured code in repetitive Narrative field 70E Optional Sequence F Additional Information block

will use the ADTX qualifier. The field size is maximum with 10 lines and each line can go up to 35 characters, excluding the qualifier and //.

- The structured code must appear as an individual occurrence and as the last piece of information of 70E. - The structured code is:


- The structured code must appear together with delimiters. - The structured code must appear on the same line.


1. This is an example of a corporate action that is an offshore CNY event. The structured code appears

before another occurrence of field 70E in sequence F.

Message type 564


Optional Sequence F Additional Information

Narrative :70E::ADTX//PSET/HK/

Narrative :70E::ADTX//<narrative text> <narrative text>

2. This is an example of a corporate action notification is for an offshore CNY event. The structured code

appears after another occurrence of field 70E in sequence F.



3. This is an example of an error in the format because there is additional narrative text in field 70E in

sequence F. Although the SWIFT network will not reject the message, OCBPG does not agree this presentation.

Narrative :70E::ADTX//PSET/HK/<narrative text>

3.3.6. MT 565 - Corporate Action Instruction

- The structured code will be put in Optional Sequence F Additional Information block, in repetitive

Narrative field 70E with the ADTX qualifier. The field size is maximum with 10 lines and each line can go up to 35 characters, excluding the qualifier and //.

- The structured code must appear in an individual occurrence of 70E. Additional information has to put in another repeated field 70E with ADTX qualifier.



- The structure must appear together with delimiters. - The structured code must appear on the same line.


1. In this example, the corporate action instruction is for an offshore CNY event. The structured code

appears before another occurrence of field 70E in sequence E.

Message type 565

Optional Sequence E Additional Information



Narrative :70E::ADTX//<narrative text> < narrative text>

2. In this example, the corporate action instruction is for an offshore CNY event. The structured code

appears after another occurrence of field 70E in sequence E.



3.3.7. MT 566 - Corporate Action Confirmation

- The structured code is used in Optional Sequence F Additional Information block, in repetitive Narrative

field 70E with ADTX qualifier. The field size is maximum with 10 lines and each line can go up to 35 characters, excluding the qualifier and //.

- The structured code must appear in an individual occurrence of 70E. Additional information has to put in another repeated field 70E with ADTX qualifier.



- The structure must appear together with delimiters. - The structured code must appear on the same line.


1. In this example, the corporate action confirmation is for an offshore CNY event. The structured code

appears before another occurrence of field 70E in sequence E.

Message type 566

Optional Sequence E Additional Information



2. In this example, the corporate action confirmation is for an offshore CNY event. The structured code

appears after another occurrence of field 70E in sequence E.




3.4. Standing Settlement Instruction

3.4.1. MT 670 - Standing Settlement Instruction Update Notification Request

- The structured code in Optional Subsequence B2 Other Details block, in repetitive Narrative field 70E

with ADTX qualifier. The field size is maximum with 10 lines and each line can go up to 35 characters, excluding the qualifier and ‘//’

- The structured code must appear in an individual occurrence of 70E. Any additional information has to put in another repeated field 70E ADTX



- The structure must appear together in its’ entirety with delimiters. - The structured code must appear on the same line.

It is optional to specify the structured code.

3. In this example, the standing settlement instruction notification is for offshore CNY. The structured

code appears before another occurrence of field 70E in sequence B2.

Message type 670


Optional Subsequence B2 Other Details



4. In this example, the standing settlement instruction notification is for offshore CNY. The structured

code appears after another occurrence of field 70E in sequence B2.



1. This is an error in the format because there is additional narrative text in field 70E in sequence B2.

Although the SWIFT network will not reject this message, OCBPG does not agree this presentation.

Narrative :70E::ADTX//PSET/HK/<narrative text>

3.4.2. MT 671 - Standing Settlement Instruction Update Notification

This is a message generated by the SWIFT network from the fields of the MT 670. If the original MT 670 has the offshore CNY structured field, it will automatically appear in the same block of information in the MT 671. However, if the original MT 670 doesn’t follow the OCBPG guidelines then the MT 671will also not follow the OCBPG guidelines.

3.5. Cash Reporting

3.5.1. MT 900 - Confirmation of Debit


- The two possible structured code are:



non-Trade Settlement related. - The structured code must be used in its entirety together with delimiters. The structured code must

appear as the very last piece of information in the field. - The structured code must appear in a single line.



1. The advice is for offshore CNY. The place of settlement is Hong Kong and the transaction is trade related. First four lines already filled with other information and there is insufficient space to hold the full piece of information in the fourth line in field 72.

Message type 900


2. The advice is for offshore CNY. The place of settlement is Hong Kong and the transaction is non trade

related. First four lines filled with other information and the fourth line has sufficient space to hold the full piece of information in field 72.



related. There is no information needed to put in field 72.

Sender to Receiver Information :72:/PSET/HK/NT/

4. Error format, structured code is not the very last piece of information in the field. Although SWIFT

network will not reject the message, OCBPG does not agree this presentation.

Sender to Receiver Information :72:<narrative text> <narrative text> <narrative text>/PSET/HK/TR/<narrative text>

3.5.2. MT 910 - Confirmation of Credit


- The two possible structured code are:



non-Trade Settlement related. - The structured code must be used in its entirety together with delimiters.


- The structured code must appear as the very last piece of information in the field. - The structured code must appear in a single line.



related. First four lines filled with other information and the fourth line has sufficient space to hold the full piece of information in field 72.

Message type 910


3.5.3. MT 940 - Customer Statement Message

When neither message context nor destination of the message is able to indicate the transaction is related to offshore CNY

- Use account identification – field 25. This field is at maximum contains 35 characters - After presenting the account number, put additional remarks that had been agreed with counter party


1. The report is for offshore CNY.

Message type 940


3.5.4. MT 942 - Interim Transaction Report






Message type 942


3.5.5. MT 950 - Statement Message





Message type 950


4. Frequently Asked Questions

5. Observations and Recommendations

The OCBPG is not a regulatory body and cannot enforce any of the guidelines. It can only point out practices which, when followed properly, are beneficial to financial community.

Above and beyond the guidelines stated above, the community can use below observations and recommendations to better deal with the operational impact around offshore CNY:


6. Market Feedback

offshore cny best practice guidelines for consultation

Documents